N.B. mortgage delinquency remains elevated for third straight year

New Brunswick mortgage arrears are still disproportionately high compared to the national delinquency rate

N.B. mortgage delinquency remains elevated for third straight year
Latest data from the Canada Mortgage and Housing Corp. showed that mortgage delinquency has remained at a high level in New Brunswick for the third consecutive year, especially when compared to national levels.

Average mortgage payment in the province as a whole stood at $811 in the fourth quarter of 2016, the lowest in the country. Saint John had a delinquency rate of 0.86 per cent in the same period, while Moncton was at 0.71 per cent—in stark contrast to the national average of 0.34 per cent.

“When we look at the province we end up with a story that is kind of mixed, that things aren't necessarily any better they aren't necessarily any worse,” CMHC regional economist Alex MacDonald told CBC News.

MacDonald cited static employment growth as a major factor in the province’s delinquency rates. Unemployment in New Brunswick is currently at 8.7 per cent.

“The fact that we don’t have this substantial job growth over several years is obviously contributing to some of the risks, and the fact that we're also seeing inventory levels relatively high,” McDonald explained, adding that on average, a home in New Brunswick takes about 100 days to get sold.